Question

If the price of Computer increase by $10\%$ and supply increases by $25\%$. The elasticity of supply is?

• A. $2.5$
• B. $0.4$
• C. $(-)2.5$
• D. $(-)0.4$

Answer 1

The correct option is A $2.5$

$2.5$. Es$=\frac{\%\Delta s}{\%\Delta p}=\frac{25}{10}=2.5$